Invesco RE and Logport Development have concluded a forward purchase agreement on Logport Prague West, a strategically located last-mile logistics facility. Together, they will develop the 37,900 sqm facility whose construction kicked off in September. The first tenants of the park have already committed to the scheme, which is located along the Prague ring road. They should be able to move in during the summer of 2023. The transaction was mediated by Cushman & Wakefield.
In all, 11 separate units are to be completed by Q1 2024 and should feature a mix of logistics and light production, offices and showrooms. Seven units – called LogSpace – will be prepared for distribution, warehousing and light production. The remaining four LogBox building will be a highly flexible blend of smaller warehousing, office and showroom/retail assets.
“Such opportunities are a rare commodity in the Czech Republic and even more so in Prague, due to a stringent planning system. However, with high demand from tenants, we expect the last-mile sector to grow significantly. Prague is a major driver of the Czech economy, and its inhabitants represent the wealthiest segment, ranking third by GDP per capita in terms of purchasing power in the EU,” says Tomáš Pícha of Invesco Real Estate.
Michal Soták (Cushman & Wakefield) says Prague’s urban logistics market has shown the highest rental growth among major European cities since 2021 because of strong tenant demand and a lack of new supply. “Acquiring a prime asset on this highly supply-constrained market is exceptionally difficult and forward funding a developer is effectively the only way for an investor to buy into this sector.”
David Vais of Logport Development says the project will BREEAM In-use Excellent post completion and BREEAM New construction Very Good.
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